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The 2009 Urban Poverty Survey (UPS-09) showed that Ho Chi Minh City has a higher poverty rate than Hanoi despite having a higher average income rate.
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| Multi-dimensional survey says Ho Chi Minh City has higher poverty rate than Hanoi |
This is Vietnam’s first poverty survey which used a multi-dimensional approach method, including different aspects of education, healthcare, employment, income and expenditures. In the past, poverty studies were only on income and expenditures.
UPS-09 was conducted in October and November of 2009. This study was done to support the assessment of urban poverty in Hanoi and Ho Chi Minh City and was funded by the United Nations Development Programme (UNDP).
If only based on income factors, Hanoi’s poverty rate is 4.6% compared to 2.1% in Ho Chi Minh City. According to UPS-09, average per capita income of Hanoi is VND2.321 million (USD116) per month compared to VND2.445 million (USD122) in Ho Chi Minh City.
However, using UPS-09’s multi-dimensional approach, it shows that Hanoi actually has a lower poverty rate than Ho Chi Minh City.
Hanoi’s rate of universalising secondary education is estimated at 90.2% against 74.1% in Ho Chi Minh City. The literacy rate of people in Hanoi is 98%, while in Ho Chi Minh City it is 95.8%.
Up to 71.8% of Hanoi’s population has health insurance cards and the rate is just 57.1% in Ho Chi Minh City. In 2009, a person in the capital city spent over VND1 million (USD50) on average for healthcare services and the figure was nearly VND900,000 (USD45) in Ho Chi Minh City. The rate of untrained labourers in Hanoi is 50% compared to over 70% in Ho Chi Minh City.
A higher proportion of people in Ho Chi Minh City were living in overcrowded conditions of less than 7 square metres per person compared to Hanoi (31% versus 26%). In Hanoi, more than 70% of population uses clean water and in Ho Chi Minh City only 52% do.
Migrants make up majority of those in poverty
UPS-09 also indicated that migrants make up over 11% of Hanoi’s total population and 20% of Ho Chi Minh City’s. A migrant in the two cities earns a monthly average income of some VND2 million (USD100), equal to 84% of a permanent resident’s.
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| Vice Chairman of Hanoi People’s Committee, Hoang Manh Hien speaking at the conference |
The average housing area of a migrant is 8 square metres versus 20 square metres a permanent resident averages.
Notably, one third of migrants are living in very narrowing conditions with only 4 square metres per person.
The rate of untrained migrants is 76.2% against roughly 60% of the registered population. Up to 66% of permanent residents have health insurance cards while the rate is just 43% among migrants.
The inequality is also seen in the education sector. Up to 99% of residential children aged between five and nine go to school and the rate among migrant children is 90%.
Speaking at the conference, Vice Chairman of Hanoi People’s Committee, Hoang Manh Hien said, “The results of the survey will help state agencies and authorities to have more comprehensive and accurate assessments on the urban poverty situation.” He also noted that UPS-09 will also help Hanoi and Ho Chi Minh City to have their own mechanism to supervise poverty for long-term measures.
UNDP country director Setsuko Yamazaki said the results clearly show that Hanoi and Ho Chi Minh City are facing challenges for sustainable socio-economic development, including inequalities in social service approaches between natives and migrants.
She also emphasised UNDP is willing to help the two cities to better supervise the poverty situation as well as implement related policies.
